We know that sales are still sought after by consumers, especially right now. With the current rise in prices, half of Canadians say they have been looking for more sales and deals in the past six months. But are they satisfied? Have they really taken advantage of great deals? The question is: Are sales a thing of the past?
The situation here and elsewhere
In Australia, it has just been announced that retailers are planning in the coming months to recover their costs from the last two years of COVID-19 by increasing their profit margins. Indeed, due to increasing cost models, retailers are under increasing pressure with margin growth becoming more difficult. Some are talking about offering fewer discounts, and others are simply raising their prices. Some retailers are also proposing to offer discounts on a more individual basis, via customer emails, for example.
In Quebec, retailers are also more reluctant this year to put discount labels on their merchandise. Sales are no longer as frequent and generous and are applied to a more limited number of items. Some prefer to be cautious and not sell out of their merchandise, for fear that the following year there will not be enough product to go around.
The opposite is also happening in the United States: in order to cope with shortages, some companies like Walmart and Target have decided to stockpile more products, as a precaution and a forecast. This is how experts are predicting a massive wave of sales this summer.
The return of Zellers
The Hudson’s Bay Company has just announced the imminent return of Zellers, a brand well associated with discounts and savings. With consumers looking for ever lower prices, re-launching the brand during this period of inflation, despite the fierce competition, could greatly help the success of the reopening of the banner.
This time, in addition to its physical store presence, the new Zellers will offer an online shopping experience through a new e-commerce website. The big return will be in 2023.
Web deal hunters and bargain groups
Another interesting phenomenon is the rise of the “deal hunter” profession, entrepreneurs who find the best online deals for their subscribers in exchange for commissions. Through price reductions, promotional codes and coupons, buyers can see their bill reduced to a fraction of the price.
In this sense, Facebook deal groups are also on the rise, with the ability to join a niche group that perfectly matches our needs and geographic location to share discounts with our community.
In closing, with the current inflation and the consumer world still reeling from the last two years of pandemic, it’s still too early to tell if the sale craze is a temporary situation or well established in consumer habits: only time will tell.